Good markets to everyone☀️
The Fed bought $43.6 billion worth of Treasury bonds last week without any press release and without making any major news.
On May 8, he bought $8.8 billion worth of 30-year long-term bonds in a single day.
At the beginning of the week, it made purchases of 34.8 billion dollars. The Fed has actually quietly pumped money into the market.
So, technically, we can call it hidden quantitative easing. Why is this important for crypto and stock market traders like us?
Because the Fed normally tightens, that is, it sells bonds. What it is doing now is the opposite, instead of withdrawing money, it buys bonds from the system and gives liquidity again.
Often, such quiet moves can be a harbinger of big fluctuations. Such quantitative easing begs the following questions: Is the liquidity problem growing? Is there a stress in the banking system?
Is there a lack of demand in the debt markets? When these questions start to be asked, the instruments that will benefit the most from this are Gold, Bitcoin and stock markets.
Show original1.01K
112.17K
The content on this page is provided by third parties. Unless otherwise stated, OKX is not the author of the cited article(s) and does not claim any copyright in the materials. The content is provided for informational purposes only and does not represent the views of OKX. It is not intended to be an endorsement of any kind and should not be considered investment advice or a solicitation to buy or sell digital assets. To the extent generative AI is utilized to provide summaries or other information, such AI generated content may be inaccurate or inconsistent. Please read the linked article for more details and information. OKX is not responsible for content hosted on third party sites. Digital asset holdings, including stablecoins and NFTs, involve a high degree of risk and can fluctuate greatly. You should carefully consider whether trading or holding digital assets is suitable for you in light of your financial condition.